Sun Pharma To Acquire Pola Pharma and Manufacturing Facilities

By Akia Thorpe -

November 30, 2018

Sun Pharmaceutical Industries, a Mumbai, India-headquartered pharmaceutical company, has agreed to acquire Pola Pharma, a Tokyo, Japan-based pharmaceutical company focused on the research and development, manufacture, sale, and distribution of branded and generic products in Japan, for approximately $1 million. With the acquisition, Sun Pharma gains two manufacturing facilities and Pola’s drug portfolio, which consists primarily of dermatological drugs.

Pola Pharma, part of POLA ORBIS Group, has two manufacturing facilities in Saitama, Japan with capabilities to manufacture topical products and injectables. It also has research and development capabilities to develop new technologies and formulations.

“This acquisition is in line with our strategy to strengthen our global dermatology presence,” Kirti Ganorkar, Executive Vice President, Sun Pharma said in a November 26, 2018 company statement. “Pola Pharma is a leading dermatology company and it will help us to launch our specialty and generic dermatology products in the Japanese market in [the] future.”

Sun Pharma entered the Japanese prescription-drug market in 2016 with the acquisition of 14 prescription brands from Novartis for $293 million. Those products at the time of the acquisition had combined annualized revenues of approximately $160 million.

Pola Pharma had annual revenues of approximately $108 million and reported a net loss of $7 million for the year ended December 2017 on a consolidated basis. The equity consideration, on debt free and cash free basis, for the 100% stake in Pola Pharma is approximately $1 million.

The transaction is expected to close on or before January 31, 2019, subject to completion of closing conditions.